Automatic Data confirms plan for brokerage services spin-off

MichaelBaron

NEW YORK (MarketWatch) -- Automatic Data Processing Inc.
ADP, +0.58%
Wednesday confirmed plans to spin-off its brokerage services group business to shareholders. Roseland, N.J.-based ADP expects to receive a distribution of $500 million to $700 million from the business in the form of a tax-free dividend in conjunction with the spin-off. The company expects to complete the spin-off by the end of fiscal 2007. ADP also said it plans to recommend a dividend increase for 2007 to its board at its meeting November, and it anticipates the increase before the spin-off will be in-line or higher than the 2006 increase of 19%. It plans to maintain the 2007 dividend at the same dollar amount as before the spin-off.

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